Harnessing Value-Based Delivery To Create Customer-Centric Solutions

By embracing a transparent, VBD-driven model, savvy companies can leverage the benefits of increasingly advanced technology, developed in an agile, cost-effective way to better serve customers’ real needs.

Today’s business ecosystem is fuelled by the ongoing digital disruption. Now, agile start-ups with progressive methodologies are taking on monolithic companies that find it difficult to pivot and adjust to a highly competitive, customer-first world. For companies to survive and thrive, in their respective industries and sectors, they need to embrace technology and products that serve their markets in new and innovative ways.

With IT spending in South Africa forecast to reach R276.6 billion in 2018, a 4.3% increase from 2017, there is certainly not a lack of will. Arguably, where there is a lack is in understanding what customers really want and need – and thereby delivering a product or service that sticks. To solve this challenge, innovators and technologists are moving to adopt a methodology called ‘Value-Based Delivery.’

This approach is designed to accelerate and streamline the process of developing products and services that truly serve the end user.

Defining Value

To understand how this approach is implemented within the enterprise sphere, it’s important to first define value. Naturally, the value could mean very different things to different individuals and/or companies. By removing any focus on money, it could be argued that the real value of something lies in its capacity to enhance or add meaning to one’s life. This form of value could manifest in various forms, such as saving time, cutting costs or improving one’s day-to-day lifestyle.

Yet in a world that now defines itself by speed, competition, efficiency and productivity, achieving such value is no small feat. However, if a company can solve this for their customers, chances are the customer will be happy to part with money, time or data in exchange for such widely beneficial solutions. Notably, the total global spend on information technology is projected to rise by 6.2% to $3.7 trillion this year, according to Gartner, the highest annual growth rate that the research firm has forecast since 2007. Executives clearly understand the need for technology – but not always how to reach the right technology solutions that can achieve the value they are seeking.

Today, the real challenge is finding out what that value actually is – in the context of the customer’s unique reality. This is a problem that is made worse by the undeniable fact that many companies don’t even know who their real customer is – let alone what their needs are. And, even if they do, chances are the ‘understanding’ of customer identity is based more on what the brand perceives the right solution to be, and not on what the core customer requirements really are.

Overall, there is a clouded view of what the customer actually represents, and consequently, what the customer truly requires.

Accelerating Development

To get around this very common, and very persistent challenge, it is imperative to launch technology solutions as quickly as possible with an MVP (Minimum Viable Product). This enables the developer to quickly obtain key user feedback, and to thereby ascertain whether the solution actually added value, or not. This proactive approach forms the essence of Value-Based Delivery (VBD).

Importantly, the VBD ethos enables a small team of highly skilled developers and technologists to deliver defined customer-valued products in a Rapid Time to Market.

It avoids wasting time and resources on solutions that don’t fit the problem, or that don’t fit in with the overall company culture and design. Indeed, it is estimated that 35% of all software-developed solutions are rarely, if ever, successfully implemented in the enterprise.

Embracing Agility & Transparency

While there is growing awareness amongst C-suite executives of the need to invest in world-leading technology, there continues to be a sharp disconnect when it comes to how – and why – certain solutions are developed. For example, even within companies, depending on their levels/roles, people have a different perception of value when looking at solutions or working with partners. Questions such as ‘how much time did we spend developing this?’; ‘what were the costs involved?’; and ‘what were the associated timelines?’ all reveal the varying expectations and perceptions of value.

To get around this, both business leaders and technology innovators must work to ensure that the process is fully transparent, with timelines and deliverables agreed upon from the beginning. Also, both partners must work to ensure that there is understanding of the technology itself, and how the end solution will be implemented. By embracing a transparent, VBD-driven model, savvy companies can leverage the benefits of increasingly advanced technology, developed in an agile, cost-effective way to better serve customers’ real needs.

Wayne Zwiers is the CEO and co-founder of Black Beard, a leading South African tech start up that prides itself on building business through technology. Developers at heart, Black Beard started out as a tech company that built tech solutions for business. They now find themselves building platforms that becomes the business themselves. With only two years under their business belt, Black Beard has landed clients such as Anchor Capital, Outsurance and Discovery with offices in PTA, JHB and most recently, Dublin.

Step Into The Future With Ignite Fibre

As more business is conducted online, applications and data are being moved to the cloud for increased versatility and to facilitate a better interaction with customers. This is why so many small business owners are turning their attention to fibre.

According to the SME 2018 survey conducted by World Wide Worx, small businesses are looking for connectivity solutions that will help them deliver better products and services and produce a greater return. Arthur Goldstuck, the founder of World Wide Worx, says that the fibre uptake among SMEs has grown from 7% to 24% in the last three years. SMEs want to put themselves in the best position to be more innovative and find solutions to existing and future demands.

Key benefits of switching to fibre

Once fibre is installed, SMEs will gain access to a fast, reliable and well-supported Internet connection. Fibre-optic technology uses light pulses to carry data. In terms of speed or “throughput”, fibre transfers more data at higher throughput over longer distances than copper wire.

This means faster file transfers, uninterrupted streaming and faster page load times. For instance, networking between computers will be easier when you use fibre because there’s no interference and you have a higher bandwidth, which translates to more effective data transmissions. You will also experience quick access to data or operational resources hosted in the cloud.

Businesses can adopt more cloud-based applications to improve productivity. Data transfers between team members are seamless when a business moves processes to the cloud. There’s less downtime, which allows employees to be more productive throughout the day. This directly contributes to an improved customer service.

Fibre is a superior connectivity solution because no data protocol is prioritised over another. Whether you’re uploading a cloud backup or downloading rich media, both functions will enjoy uninterrupted streaming. In terms of VoIP, the quality of voice is far superior over a fibre line.

Fibre allows your business to operate online without any of the performance and quality constraints you might have experienced previously. This opens up the business to a range of new possibilities and expands the capabilities of an SME to compete on the same level as larger businesses.

Change the way you use the Internet

When you choose a package, base it on your business requirements and be sure to take into account your daily connectivity demands. SMEs that require a cost-effective solution, with fast download speeds, should connect to an Asymmetrical line. If your workforce needs to transfer large amounts of data, adapt cloud telephony or collaborate online, it is advisable to use a Symmetrical line.

A Creative Business In A Box

With an eye for creative detail and an interest in electric machines, Mary-Anne Shaw has carved a niche reputation as a seamstress who produces perfect finished goods. Her reputation is such that she’s even had the opportunity to add some Shaw flair to a collection of Mandela family outfits in recent years.

Mary-Anne’s sewing and stitching services began as a hobby almost 45 years ago. Thanks to word-of-mouth referrals from friends and family however, it soon grew into a business. “I’ve been extremely lucky to build a small speciality business over the years selling sewing machines and teaching sewing skills, drawing business from repeat and new clients based on recommendations,” she says.

The business became more serious when, a few years ago, Mary-Anne made the decision to invest her earnings in a Brother sewing machine. “I started attending Brother training sessions and workshops to gain more knowledge and meet more people.”

Mary-Anne’s relationship with Brother grew. At a Hobby-X exhibition in Johannesburg she came across a Brother ScanNCut machine. Already familiar with the Brother brand and the training and support that customers can access, she was drawn to the ‘novelty’ machine.

“I watched a few demonstrations and immediately saw how the ScanNCut could add value to my existing business and generate some exciting new creative projects.”

Mary-Anne was right. In just two short years, she has doubled her business income, while keeping her hours flexible and her costs to a minimum. “The Brother ScanNCut is a remarkable little machine,” says Mary-Anne.

“The cutting and scanning quality is superb, and it’s easy to set up. Brother provides a number of tutorial videos and case studies and, after a few days of viewing and practising, anyone can get up and running.”

Mary-Anne began showcasing her ScanNCut capabilities at quilting events in Gauteng, gaining orders for applique work, and enquiries from people who wanted to buy the machine.

“Since the quilting events began, I haven’t stopped,” she says. “I now sell ScanNCut accessories and kits daily to existing owners, and I teach groups and individuals how to use ScanNCut to extend their skills into a variety of creative areas such as applique work for gift boxes, cushions and lamp shades, as well as card making and more. People buy the machine for their own use, or ask me to create personalised items for them on my own machines.”

Knowing who her customers are has been important to Mary-Anne’s growth. “My advice to anyone who wishes to start a small business with ScanNCut is to first understand who you want to sell to and how. Most of my work is word-of-mouth, but I also exhibit at crafting exhibitions, and work with crafting associations with an interest in the products I sell. I use email specials and post tutorials and projects on my Facebook page. I’m finalising a new website that will feature my products and training tools.”

Mary-Anne is supported by local Brother ScanNCut distributor, Kemtek Imaging Systems and its highly-qualified sales and business development team, who provide training, sales and marketing support for promotions and events. Mary-Anne’s set-up costs for ScanNCut included the machine, and a range of accessories, kits and materials, totalling R45 000. Two years on, her first machine is still in operation and she has invested in a second unit — the latest ScanNCut CM900, which offers a WiFi set-up.

Introducing the Brother ScanNCut CM900

The latest ScanNCut CM900 is a revolutionary home-cutting machine with a built-in scanner. Its uniqueness lies in the 300 dpi built-in scanner that makes it the only cutting machine able to turn scanned images, photos or hand-drawn sketches into unique cutting designs.

Once scanned, this fuss-free machine allows crafters to put their own creative spin on images, providing the option to customise using the 30% larger LCD screen with rotate, weld and resize functions, as well as an innovative ‘Pen Draw’ feature.

The interchangeable blades can easily cut shapes from a host of different materials to cater for numerous craft projects. The machine can read SVG files, PES files and PHC files containing appliqué stitch data. Fabric shapes can be cut out to then appliqué with an embroidery machine.

The ScanNCut CM900 comes with built-in wireless LAN, plus a total of 1002 built-in designs and 15 fonts.

Is The Future Of AI Around the Corner? Computing Power Suppliers Are Shifting Gears

Artificial Intelligence (AI) is changing everything from the information we see on our Facebook feeds, to improving diagnosis and treatment of medical conditions.

According to McKinsey, it has the potential to create an additional $13 trillion in global economic output by 2030. Governments and start-ups alike are scrambling to ensure they are in a position to enjoy the economic benefits that AI will bring.

However, despite the apparent potential, there’s one significant bottleneck — the supply of computational power required to develop and drive AI products and solutions.

At present, cloud-based providers of computing resources are striving to keep up with the pace of development in power hungry AI. Here, we look at the challenges faced by cloud-based computing, and some potential solutions.

Challenge 1 – Supply and Demand

AI relies on data and lots of it. As such, the computational demand of AI is growing — one report estimates that the amount of compute used by AI currently has a three and a half month doubling time.

As things stand, AI developers are dependent on computing capacity from the $247 billion cloud computing industry. This industry is dominated by four corporate IT firms – Amazon, Microsoft, Google, and IBM, collectively known as the ‘Big Four’. These companies rely on their vast centralised data centres to keep the world’s cloud computing services running.

In an attempt to meet the growing demand for AI computing services, investment in data centres is also growing at a startling pace. Computing firms spent $27 billion in the first quarter of 2018, with most of that expenditure thought to be directed into developing data centres. Compare this with the $74 billion spent in 2017, and the pace of growth is evident.

The question is, how long can the computing firms continue to keep up with demand using the traditional datacenter model?

In an attempt to stem demand, the big IT firms are increasing their costs.

With AI services requiring massive computational power before they can go to market, the rising cost of computing risks stifling innovation, particularly for smaller developers.

Challenge 2 – Environmental Sustainability

If the only way to meet demand is to build more data centres, then this means more electricity-hungry machines. It’s reported that2% of all CO2 emissions globally emerge from the datacenter industry — more than the airline industry.

While owners are investigating green energy alternatives, the fact remains that more data centres will result in higher energy consumption.

Challenge 3 – A single point of failure

Amazon famously brought down a number of large websites last year when an employee accidentally took more servers offline than intended. That event sparked a domino effect that was felt globally.

It’s natural that single points of failure raise the risk of an incident having a more substantial impact. With cloud data provided by just four companies from a limited number of data centres, that risk is always present.

A Quantum of Solace?

Chinese marketplace Alibaba is also in the business of cloud computing, albeit not yet one of the ‘Big Four’ However, its representatives have clearly stated that the company has market leader Amazon firmly in its sights.

Earlier this year, Alibaba launched its first cloud quantum computer, capable of processing 11 quantum bits (qubit). A typical computer chip is binary, meaning it can only process values of 0 or 1 at any given moment depending on its speed. A quantum computer is capable of handling both at the same time, meaning a single qubit can participate in many millions of processes.

Alibaba has pledged to continue development in this area, having already invested $15.5 billion at the end of last year. IBM is also firmly invested in quantum computing, having launched its own quantum computer last year. Quantum computers could ultimately do away with the need for centralised data centres.

From Cloud Computing to Distributed Computing

While some commentators have predicted a wait of five to ten years for quantum computing solutions to cope with demand, a few start-ups are working to meet the requirements of cloud computing on a shorter timeline. One start-up has devised a scalable solution, which it says will be up and running as early as 2019.

Tatau, which calls itself the “Uber of Computing,” has designed a platform which essentially creates a global supercomputer to harness the joint capacity of already existing GPU computing capacity.

By utilising a resource that already exists, the company claims it can offer cloud computing that is cheaper, more environmentally friendly, and more scalable than current solutions. Moreover, a decentralised model doesn’t have a single point of failure, reducing the risk of downtime or hacks.

Tatau’s decentralised network taps into the computing capacity that sits outside of data centres. The company has designed a blockchain-driven marketplace where owners of GPU hardware can sell under-utilised computing power to a buyer. By utilising latent capacity, this solution provides a way for owners of hardware to receive better returns on their investment, and provide access to reliable, cost-effective compute previously unavailable to AI developers.

The Future for AI Development

Given the growing demand for AI services, the computing sector needs to find a way to meet the need for computing services. Given the challenges inherent in the current datacenter model, it seems likely that quantum or distributed computing could ultimately take off.

The question will be, are the current ‘Big Four’ market players ready to compete on a different playing field?